Era Group Inc. Reports First Quarter 2016 Results
/EINPresswire.com/ -- HOUSTON, TX -- (Marketwired) -- 05/03/16 -- Era Group Inc. (NYSE: ERA) (the "Company") today reported a net loss of $3.8 million, or $0.19 per diluted share, for its first quarter ended March 31, 2016 ("current quarter") on operating revenues of $62.6 million compared to break-even net income for the quarter ended March 31, 2015 ("prior year quarter") on operating revenues of $67.4 million.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $12.2 million in the current quarter compared to $14.6 million in the prior year quarter. EBITDA adjusted to exclude gains on asset dispositions and special items was $9.3 million in the current quarter compared to $11.0 million in the prior year quarter. Gains on asset dispositions were $2.9 million in the current quarter compared to $3.4 million in the prior year quarter. Special items in the prior year quarter consisted of a $0.3 million gain on debt extinguishment.
"The first quarter, which is consistently our weakest quarter due to seasonal factors, was particularly challenging this year as we experienced a further decline in utilization, including the end of several contracts in December as previously disclosed with our fourth quarter results," said Chris Bradshaw, President and Chief Executive Officer of Era Group Inc. "Despite the challenging industry conditions, we generated strong cash flows during the first quarter and improved our liquidity position by $18 million for total liquidity of $240 million at quarter end."
First Quarter Results
Operating revenues in the current quarter were $4.8 million lower than the prior year quarter primarily due to fewer helicopters on contract and lower average rates as well as the sale of our fixed base operations ("FBO") in Alaska in May 2015. These reductions were partially offset by the consolidation of our Brazilian joint venture, Aeróleo Taxi Aero S/A ("Aeróleo").
Operating expenses were $0.7 million higher in the current quarter primarily due to the consolidation of Aeróleo and increased repairs and maintenance expenses, partially offset by decreased fuel, insurance and other operating expenses in the U.S.
Administrative and general expenses were $0.5 million lower in the current quarter primarily due to reduced headcount and related cost control measures as well as the elimination of shared services fees, partially offset by the consolidation of Aeróleo and higher professional service fees.
Depreciation and amortization expense was $1.2 million higher in the current quarter due to the addition of new helicopters, a base expansion project and investments in additional information technology infrastructure.
Gains on asset dispositions were $0.5 million lower in the current quarter. We sold a hangar, two helicopters and related equipment in the current quarter for proceeds of $4.0 million resulting in gains of $2.9 million. In the prior year quarter, we sold two helicopters and related equipment for proceeds of $5.4 million resulting in gains of $2.2 million, and a leasing customer exercised a purchase option for three helicopters from which we recognized gains of $1.2 million.
Interest expense was $1.2 million higher in the current quarter primarily due to reduced capitalized interest on helicopter deposits.
Foreign currency gains were $0.3 million in the current quarter primarily due to the strengthening of the Brazilian real and the revaluation of our real-denominated balances. Foreign currency losses were $3.0 million in the prior year quarter primarily due to the strengthening of the U.S. dollar resulting in losses on our euro-denominated balances and a realized loss on a settled foreign currency contract.
Sequential Quarter Results
Operating revenues in the current quarter were $11.4 million lower than in the quarter ended December 31, 2015 ("preceding quarter") primarily due to lower utilization, including the end of several contracts in December 2015, as previously disclosed.
Operating expenses were $0.8 million lower in the current quarter primarily due to reduced headcount and fewer flight hours, partially offset by increased repairs and maintenance expenses due to vendor credits recognized in the preceding quarter and increased insurance expenses due to credits recognized in the preceding quarter.
Administrative and general expenses were $1.8 million lower in the current quarter primarily due to the write-off of an uncollectable receivable in the preceding quarter and lower professional services fees and further cost cutting measures during the current quarter.
EBITDA was $4.6 million lower compared to the preceding quarter. EBITDA adjusted to exclude gains on asset dispositions and special items was $7.0 million lower. Gains on asset dispositions were $1.9 million higher compared to the preceding quarter, and the preceding quarter included $0.5 million of special items consisting of a pre-tax charge of $1.9 million on the impairment of goodwill partially offset by a pre-tax gain of $1.4 million on the extinguishment of debt.
Depreciation expense was $0.6 million higher due to helicopters placed in service at the end of the preceding quarter. Interest expense was $0.8 million higher compared to the preceding quarter due to reduced capitalized interest. Equity earnings improved by $1.2 million compared to the preceding quarter primarily due to earnings from our Dart Holding Company ("Dart") joint venture.
Fleet Update
We continue to experience excess capacity in our medium and heavy helicopters, and we expect this excess capacity to persist for the next several quarters. Excess helicopters include our helicopters other than those under customer contracts, undergoing maintenance or dedicated for charter activity. We are participating in several competitive bids to place excess medium and heavy helicopters on contract. In addition, we may sell certain helicopters on an opportunistic basis consistent with our stated strategy.
Capital Commitments
We have capital commitments of $156.1 million as of March 31, 2016, of which $40.1 million is payable during 2016 with the balance payable through 2018. We may terminate $129.4 million of our total commitments (inclusive of deposits paid on options not yet exercised) without further liability other than aggregate liquidated damages of $3.2 million. The noncancellable portion of our commitments payable during 2016 is $13.4 million.
Included in these capital commitments are agreements to purchase seven AW189 heavy helicopters, two S92 heavy helicopters and five AW169 light twin helicopters. The AW189 and S92 helicopters are scheduled to be delivered beginning in 2016 through 2018. Delivery dates for the AW169 helicopters have yet to be determined. In addition, we had outstanding options to purchase up to an additional ten AW189 helicopters and two S92 helicopters. If these options are exercised, the helicopters would be scheduled for delivery beginning in 2017 through 2018.
Capital Allocation and Liquidity
As of March 31, 2016, we had $30.8 million of cash and $208.9 million of remaining availability under our senior secured revolving credit facility (the "Facility") for total liquidity of $239.7 million. As of March 31, 2016, our funded debt-to-EBITDA and interest coverage ratios, as defined in the Facility, were 2.8x and 7.2x, respectively.
Recent Developments
On Friday, April 29, 2016, an accident occurred outside of Bergen, Norway with an Airbus Helicopters H225 heavy helicopter operated by another helicopter company. There were two crew members and 11 passengers on board, and 13 fatalities were reported. The cause of the accident is not yet known and is under investigation by the relevant authorities. In response to this accident, each of the Norwegian Civil Aviation Authority and the United Kingdom Civil Aviation Authority issued safety directives on April 29, 2016, requiring operators to suspend public transport flights and commercial air transport operations of all EC225LP (also known as a H225) model helicopters registered in, or flying in or offshore of, Norway and the United Kingdom, respectively. The safety directives permit continued search and rescue flights of the affected helicopters for the purpose of saving life. In addition, operators and customers in other countries have temporarily suspended H225 operations pending information regarding the cause of the accident.
The Company owns nine H225 helicopters, including five that are currently located in the U.S., three that are currently located in Brazil and one that is currently on a dry-lease contract with a customer in Norway for search and rescue operations. During this suspension of H225 operations, the Company expects to utilize other heavy and medium helicopters to service its operations and expects to continue to earn revenues from the helicopter on dry-lease. Although it is too early to know the extent of any suspension of H225 helicopter operations, the Company does not expect the near-term impact of the suspension to be material to its financial condition or results of operations.
Conference Call
Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, May 4, 2016, to review the results for the first quarter ended March 31, 2016. The conference call can be accessed as follows:
All callers will need to reference the access code 1742404.
Within the U.S.: Operator Assisted Toll-Free Dial-In Number: (888) 401-4668
Outside the U.S.: Operator Assisted International Dial-In Number: (719) 457-2627
Replay
A telephone replay will be available through May 19, 2016 and may be accessed by calling (888) 203-1112 for domestic callers or (719) 457-0820 for international callers. An audio replay will also be available on the Company's website at www.eragroupinc.com shortly after the call and will be accessible through May 19, 2016.
About Era Group
Era Group is one of the largest helicopter operators in the world and the longest serving helicopter transport operator in the U.S. In addition to servicing its U.S. customers, Era Group also provides helicopters and related services to customers and third-party helicopter operators in other countries, including Brazil, Colombia, the Dominican Republic, India, Norway, Spain, Suriname and the United Kingdom. Era Group's helicopters are primarily used to transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations.
Forward-Looking Statements Disclosure
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements concerning management's expectations, strategic objectives, business prospects, anticipated performance and financial condition and other similar matters involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others, the Company's dependence on, and the cyclical and volatile nature of, offshore oil and gas exploration, development and production activity, and the impact of general economic conditions and fluctuations in worldwide prices of and demand for oil and natural gas on such activity levels; the Company's reliance on a small number of customers and the reduction of its customer base resulting from consolidation; cost-saving initiatives implemented by the Company's customers; risks inherent in operating helicopters; the Company's ability to maintain an acceptable safety record; the Company's ability to successfully expand into other geographic and helicopter service markets; the impact of increased U.S. and foreign government regulation and legislation, including potential government implemented moratoriums on drilling activities; risks of engaging in competitive processes or expending significant resources with no guaranty of recoupment; risks of a grounding of all or a portion of the Company's fleet for extended periods of time or indefinitely; risks that the Company's customers reduce or cancel contracted services or tender processes; the Company's reliance on a small number of helicopter manufacturers and suppliers; risks associated with political instability, governmental action, war, acts of terrorism and changes in the economic condition in any foreign country where the Company does business, which may result in expropriation, nationalization, confiscation or deprivation of the Company's assets or result in claims of a force majeure situation; the impact of declines in the global economy and financial markets; the impact of fluctuations in foreign currency exchange rates on the Company's cost to purchase helicopters, spare parts and related services and on asset values; the Company's credit risk exposure; the Company's ongoing need to replace aging helicopters; the Company's reliance on the secondary helicopter market to dispose of older helicopters; the Company's reliance on information technology; the impact of allocation of risk between the Company and its customers; the liability, legal fees and costs in connection with providing emergency response services; risks associated with the Company's debt structure; operational and financial difficulties of the Company's joint ventures and partners; conflict with the other owners of the Company's non-wholly owned subsidiaries and other equity investees; adverse results of legal proceedings; adverse weather conditions and seasonality; the Company's ability to obtain insurance coverage and the adequacy and availability of such coverage; the possibility of labor problems; the attraction and retention of qualified personnel; restrictions on the amount of foreign ownership of the Company's common stock; and various other matters and factors, many of which are beyond the Company's control. In addition, these statements constitute Era Group's cautionary statements under the Private Securities Litigation Reform Act of 1995. It is not possible to predict or identify all such factors. Consequently, the foregoing should not be considered a complete discussion of all potential risks or uncertainties. The words "estimate," "project," "intend," "believe," "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. Era Group disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in Era Group's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. The forward-looking statements in this release should be evaluated together with the many uncertainties that affect the Company's businesses, particularly those mentioned under "Risk Factors" in Era Group's Annual Report on Form 10-K/A for the year ended December 31, 2015, in Era Group's subsequent Quarterly Reports on Form 10-Q and in Era Group's current reporting on Form 8-K (if any), which are incorporated by reference.
ERA GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)
Three Months Ended
March 31,
------------------------
2016 2015
----------- -----------
Operating revenues $ 62,582 $ 67,415
----------- -----------
Costs and expenses:
Operating 44,307 43,605
Administrative and general 9,227 9,743
Depreciation and amortization 12,766 11,602
----------- -----------
Total costs and expenses 66,300 64,950
----------- -----------
Gains on asset dispositions, net 2,913 3,388
----------- -----------
Operating income (loss) (805) 5,853
----------- -----------
Other income (expense):
Interest income 301 251
Interest expense (4,748) (3,545)
Derivative losses, net -- (12)
Foreign currency gains (losses), net 281 (2,960)
Gain on debt extinguishment -- 264
Other, net (17) --
----------- -----------
Total other income (expense) (4,183) (6,002)
----------- -----------
Loss before income taxes and equity earnings (4,988) (149)
Income tax benefit (1,014) (55)
----------- -----------
Loss before equity earnings (3,974) (94)
Equity earnings (losses), net of tax 24 (145)
----------- -----------
Net loss (3,950) (239)
Net loss attributable to non-controlling interest
in subsidiary 132 197
----------- -----------
Net loss attributable to Era Group Inc. $ (3,818) $ (42)
=========== ===========
Loss per common share, basic and diluted $ (0.19) $ --
Weighted average common shares outstanding, basic
and diluted 20,219,937 20,195,955
EBITDA $ 12,249 $ 14,602
Adjusted EBITDA $ 12,249 $ 14,338
Adjusted EBITDA excluding gains $ 9,336 $ 10,950
ERA GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share amounts)
Three Months Ended
---------------------------------------------------------------
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
----------- ----------- ----------- ----------- -----------
Operating
revenues $ 62,582 $ 73,943 $ 69,741 $ 70,738 $ 67,415
----------- ----------- ----------- ----------- -----------
Costs and
expenses:
Operating 44,307 45,085 43,007 39,784 43,605
Administra-
tive and
general 9,227 11,052 11,238 10,779 9,743
Depreciation
and
amortization 12,766 12,151 12,186 11,398 11,602
----------- ----------- ----------- ----------- -----------
Total
costs and
expenses 66,300 68,288 66,431 61,961 64,950
----------- ----------- ----------- ----------- -----------
Gains
(losses) on
asset
dispositions,
net 2,913 994 1,813 (242) 3,388
----------- ----------- ----------- ----------- -----------
Goodwill
impairment -- (1,866) -- -- --
----------- ----------- ----------- ----------- -----------
Operating
income
(loss) (805) 4,783 5,123 8,535 5,853
----------- ----------- ----------- ----------- -----------
Other income
(expense):
Interest
income 301 391 232 317 251
Interest
expense (4,748) (3,979) (3,121) (2,881) (3,545)
Derivative
gains
(losses),
net -- (4) 8 (10) (12)
Foreign
currency
gains
(losses),
net 281 (319) 146 543 (2,960)
Gain (loss)
on debt
extinguish-
ment -- 1,369 (16) -- 264
Gain on
sale of
FBO -- -- -- 12,946 --
Other, net (17) 54 -- (9) --
----------- ----------- ----------- ----------- -----------
Total
other
income
(expense) (4,183) (2,488) (2,751) 10,906 (6,002)
----------- ----------- ----------- ----------- -----------
Income
(loss)
before
income
taxes and
equity
earnings (4,988) 2,295 2,372 19,441 (149)
Income tax
expense
(benefit) (1,014) 4,691 1,343 8,138 (55)
----------- ----------- ----------- ----------- -----------
Income
(loss)
before
equity
earnings (3,974) (2,396) 1,029 11,303 (94)
Equity
earnings
(losses),
net of tax 24 (1,224) (376) (198) (145)
----------- ----------- ----------- ----------- -----------
Net income
(loss) (3,950) (3,620) 653 11,105 (239)
Net loss
(income)
attributable
to non-
controlling
interest in
subsidiary 132 173 208 228 197
----------- ----------- ----------- ----------- -----------
Net income
(loss)
attributable
to Era
Group Inc. $ (3,818) $ (3,447) $ 861 $ 11,333 $ (42)
=========== =========== =========== =========== ===========
Earnings
(loss) per
common
share,
basic $ (0.19) $ (0.17) $ 0.04 $ 0.55 $ --
Earnings
(loss) per
common
share,
diluted $ (0.19) $ (0.17) $ 0.04 $ 0.55 $ --
Weighted
average
common
shares
outstanding,
basic 20,219,937 20,183,027 20,260,514 20,273,780 20,195,955
Weighted
average
common
shares
outstanding,
diluted 20,219,937 20,183,027 20,287,069 20,332,657 20,195,955
EBITDA $ 12,249 $ 16,810 $ 17,071 $ 33,205 $ 14,602
Adjusted
EBITDA $ 12,249 $ 17,307 $ 17,087 $ 20,259 $ 14,338
Adjusted
EBITDA
excluding
gains $ 9,336 $ 16,313 $ 15,274 $ 20,501 $ 10,950
ERA GROUP INC.
OPERATING REVENUES BY LINE OF SERVICE
(unaudited, in thousands)
Three Months Ended
----------------------------------------
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
------- ------- ------- ------- -------
Oil and gas:(1)
U.S. Gulf of Mexico $36,812 $40,368 $42,132 $41,821 $41,913
Alaska 932 3,309 5,429 6,009 3,801
International 14,054 18,865 60 47 --
------- ------- ------- ------- -------
Total oil and gas 51,798 62,542 47,621 47,877 45,714
Dry-leasing 3,995 4,643 11,925 12,233 11,956
Search and rescue 4,891 4,955 4,418 4,989 5,238
Air medical services 1,898 1,803 1,854 1,914 2,367
Flightseeing -- -- 3,923 3,118 --
Fixed base operations -- -- -- 614 2,146
Eliminations -- -- -- (7) (6)
------- ------- ------- ------- -------
$62,582 $73,943 $69,741 $70,738 $67,415
======= ======= ======= ======= =======
FLIGHT HOURS BY LINE OF SERVICE(2)
(unaudited)
Three Months Ended
---------------------------------------
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
------- ------- ------- ------- -------
Oil and gas:(1)
U.S. Gulf of Mexico 7,290 8,255 9,435 8,717 7,612
Alaska 77 380 797 732 290
International 2,332 3,055 22 14 --
------- ------- ------- ------- -------
Total oil and gas 9,699 11,690 10,254 9,463 7,902
Search and rescue 201 275 265 260 300
Air medical services 618 748 949 826 825
Flightseeing -- -- 1,502 1,118 --
------- ------- ------- ------- -------
10,518 12,713 12,970 11,667 9,027
======= ======= ======= ======= =======
____________________
(1) Primarily oil and gas services, but also includes revenues from
activities such as firefighting and utility support.
(2) Does not include hours flown by helicopters in our dry-leasing line of
service.
ERA GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
--------- ---------- --------- ---------- ----------
ASSETS
Current assets:
Cash and cash
equivalents $ 30,803 $ 14,370 $ 13,808 $ 17,002 $ 33,691
Receivables:
Trade, net of
allowance for
doubtful
accounts 36,980 48,639 39,498 39,866 38,949
Tax receivables 6,068 6,085 114 105 380
Other 3,707 3,305 2,399 2,005 2,187
Inventories, net 27,744 27,994 24,932 25,808 26,189
Prepaid expenses 3,274 1,963 3,055 3,847 4,081
Deferred income
taxes -- -- 2,276 2,507 2,167
Other current
assets 191 191 2,297 6,762 2,800
--------- ---------- --------- ---------- ----------
Total current
assets 108,767 102,547 88,379 97,902 110,444
--------- ---------- --------- ---------- ----------
Property and 1,171,27 1,175,69
equipment 1 1,175,909 3 1,192,445 1,171,548
Accumulated
depreciation (325,363) (316,693) (311,070) (314,484) (315,399)
--------- ---------- --------- ---------- ----------
Net property and
equipment 845,908 859,216 864,623 877,961 856,149
--------- ---------- --------- ---------- ----------
Equity investments
and advances 28,795 28,898 30,256 30,945 31,397
Goodwill -- -- 1,589 1,823 352
Intangible assets 1,153 1,158 1,411 1,410 --
Other assets 12,850 12,532 9,164 10,890 11,409
--------- ---------- --------- ---------- ----------
Total assets $ 997,473 $1,004,351 $ 995,422 $1,020,931 $1,009,751
========= ========== ========= ========== ==========
LIABILITIES,
REDEEMABLE
NONCONTROLLING
INTEREST AND
STOCKHOLDERS'
EQUITY
Current
liabilities:
Accounts payable
and accrued
expenses $ 10,119 $ 12,000 $ 12,037 $ 12,026 $ 13,904
Accrued wages and
benefits 6,244 9,012 7,861 7,293 6,822
Accrued interest 3,491 562 3,992 813 4,791
Accrued income
taxes -- -- 7,415 7,613 37
Derivative
instruments -- -- 71 192 275
Accrued other
taxes 1,905 2,520 1,259 968 1,326
Accrued
contingencies 2,851 2,410 -- -- --
Current portion of
long-term debt 2,291 3,278 25,335 26,130 26,729
Other current
liabilities 1,775 2,300 3,476 2,588 1,795
--------- ---------- --------- ---------- ----------
Total current
liabilities 28,676 32,082 61,446 57,623 55,679
--------- ---------- --------- ---------- ----------
Long-term debt 263,590 263,698 239,515 264,014 273,677
Deferred income
taxes 229,083 229,848 213,998 218,802 217,200
Deferred gains and
other liabilities 2,855 2,616 1,956 1,994 1,937
--------- ---------- --------- ---------- ----------
Total liabilities 524,204 528,244 516,915 542,433 548,493
--------- ---------- --------- ---------- ----------
Redeemable
noncontrolling
interest 4,672 4,804 4,783 5,195 --
Equity:
Era Group Inc.
stockholders'
equity:
Common stock 211 207 207 206 206
Additional paid-
in capital 434,460 433,175 432,774 431,233 430,251
Retained earnings 36,684 40,502 43,949 43,088 31,755
Treasury shares,
at cost (2,850) (2,673) (2,632) (563) (560)
Accumulated other
comprehensive
income (loss),
net of tax 92 92 92 (44) 93
--------- ---------- --------- ---------- ----------
Total Era Group
Inc.
stockholders'
equity 468,597 471,303 474,390 473,920 461,745
Non-controlling
interest -- -- (666) (617) (487)
--------- ---------- --------- ---------- ----------
Total equity 468,597 471,303 473,724 473,303 461,258
--------- ---------- --------- ---------- ----------
Total liabilities,
redeemable
noncontrolling
interest and
stockholders'
equity $ 997,473 $1,004,351 $ 995,422 $1,020,931 $1,009,751
========= ========== ========= ========== ==========
Our management uses EBITDA and Adjusted EBITDA to assess the performance and operating results of our business. EBITDA is defined as Earnings before Interest (includes interest income and interest expense), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for certain items noted in the reconciliation below that occur during the reported period. We include EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of our operating performance. Neither EBITDA nor Adjusted EBITDA is a recognized term under generally accepted accounting principles in the U.S. ("GAAP"). Accordingly, they should not be used as an indicator of, or an alternative to, net income as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definitions of EBITDA and Adjusted EBITDA (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies.
The following table provides a reconciliation of Net Income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).
Three Months Ended
--------------------------------------------
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
------- ------- ------- -------- -------
Net Income $(3,950) $(3,620) $ 653 $ 11,105 $ (239)
Depreciation and
amortization 12,766 12,151 12,186 11,398 11,602
Interest income (301) (391) (232) (317) (251)
Interest expense 4,748 3,979 3,121 2,881 3,545
Income tax expense (benefit) (1,014) 4,691 1,343 8,138 (55)
------- ------- ------- -------- -------
EBITDA $12,249 $16,810 $17,071 $ 33,205 $14,602
Special items (1) -- 497 16 (12,946) (264)
------- ------- ------- -------- -------
Adjusted EBITDA $12,249 $17,307 $17,087 $ 20,259 $14,338
Losses (gains) on asset
dispositions, net (2,913) (994) (1,813) 242 (3,388)
------- ------- ------- -------- -------
Adjusted EBITDA excluding
gains $ 9,336 $16,313 $15,274 $ 20,501 $10,950
======= ======= ======= ======== =======
____________________
(1) Special items include the following:
- In the three months ended December 31, 2015, a pre-tax gain of $1.4 million on the extinguishment of debt related to the repurchase of a portion of our 7.750% Senior Notes and a pre-tax charge of $1.9 million on the impairment of our goodwill;
- In the three months ended September 30, 2015, a pre-tax loss of less than $0.1 million on the extinguishment of debt related to the repurchase of a portion of our 7.750% Senior Notes;
- In the three months ended June 30, 2015, a pre-tax gain of $12.9 million on the sale of our FBO in Alaska; and
- In the three months ended March 31, 2015, a pre-tax gain of $0.3 million on the extinguishment of debt related to the repurchase of a portion of our 7.750% Senior Notes.
The Facility requires that the Company maintain certain financial ratios on a rolling 12-month basis. The interest coverage ratio is a trailing 12-month quotient of (i) EBITDA (as defined in the Facility) less dividends and distributions divided by (ii) interest expense. The interest coverage ratio is not a measure of operating performance or liquidity defined by GAAP and may not be comparable to similarly titled measures presented by other companies. The funded debt to EBITDA ratio is calculated by dividing (i) the sum of total debt for borrowed money, capital lease obligations and guaranties of obligations of non-consolidated entities by (ii) EBITDA (as defined in the Facility). The funded debt to EBITDA ratio is not a measure of operating performance or liquidity defined by GAAP and may not be comparable to similarly titled measures presented by other companies.
ERA GROUP INC.
FLEET COUNTS(1)
(unaudited)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
-------- -------- -------- -------- --------
Heavy:
H225 9 9 9 9 9
S92 2 2 -- -- --
AW189 2 2 -- -- --
-------- -------- -------- -------- --------
13 13 9 9 9
======== ======== ======== ======== ========
Medium:
AW139 38 38 39 39 39
S76 C+/C++ 6 6 6 6 6
S76 A++ -- 2 2 2 2
B212 8 8 8 8 8
B412 1 1 2 3 3
-------- -------- -------- -------- --------
53 55 57 58 58
======== ======== ======== ======== ========
Light--twin engine:
A109 7 7 7 7 7
EC135 17 17 17 19 19
EC145 5 5 5 5 5
BK117 3 3 3 3 3
BO105 3 3 3 3 --
-------- -------- -------- -------- --------
35 35 35 37 34
======== ======== ======== ======== ========
Light--single engine:
A119 14 14 16 17 17
AS350 29 29 31 31 35
-------- -------- -------- -------- --------
43 43 47 48 52
======== ======== ======== ======== ========
Total Helicopters 144 146 148 152 153
======== ======== ======== ======== ========
____________________
(1) Includes all owned, joint ventured, leased-in and managed helicopters
and excludes helicopters fully paid for and delivered but not yet placed
in service as of the applicable dates.
